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You Need to Start Caring About Your Super
It’s important to nurture your superannuation fund as soon as possible or you could run the risk of not being able to afford the retirement you’ve been dreaming of.
So, if you’re asking when you should start caring about your super, the answer is “right now”. It’s time to start caring about your superannuation or you might be left short by tens of thousands of dollars in your golden years.
National Financial Advisors have compiled a few reasons as to why a good financial strategy can help, and why you need to start thinking about your superannuation sooner rather than later.
Rising Cost of Living
Couples that seek to enjoy a comfortable retirement are estimated to need $57,817 per year, or a joint superannuation balance of around $510,000; and the cost is rising each year. If your superannuation strategy is an afterthought, you may find that you’re always playing catch-up with that ever-increasing cost of living when you want to be ahead.
Thanks to compounding interest, the earlier you begin investing in your superannuation the better your chances are of being able to save more over time. It’s the quintessential case of your money working for itself, and it’s a retirement planning strategy that you need to take advantage of to help your retirement have a better chance of being stress-free. To illustrate how powerful compounding interest can be on your super fund, the Australian Prudential Regulation Authority (APRA) estimates that money compounded at 7% per year can double over ten years!
Control via Contributions
You can add excess funds into your super fund which may be be a very profitable way of growing your finances for retirement. By contributing a little bit of extra money into your super fund, you may be able to make big returns when it comes time to retire. For example, CANSTAR outlines that a 25-year-old that contributes an extra $200 per month for five years stands to increase their super fund by $169,000!
Change Your Strategy by Life Stage
Your life stage can make a big difference on your superannuation strategy, which means you may want to pay attention to what’s going on with your super fund. By changing your strategy according to your life stage, you may be able to ramp up your savings beyond what a static superannuation fund may earn. You will find that as you shift life stages there will be a need to also shift your superannuation strategy!
Superannuation is an important part of retirement planning, but many Australians aren’t informed as to how to best make their money work for them. National Financial Advisors’ superannuation specialists can assist you in determining the most appropriate super structure for your needs, and help lead you into a comfortable retirement. Contact National Financial Advisors or call 1300 889 787 for advice from one of our expert super fund advisors today!